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tv   Trending Business  Bloomberg  June 12, 2016 9:00pm-11:01pm EDT

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♪ it is monday, the 13th of june. this is "trending business". i am rishaad salamat. ♪ rishaad: we will be taking you to beijing and singapore this hour. investigatediller by the fbi. president obama to announce is the hatred as clinton and trump argue about radical islam and gun control. symantec is buying blue coat
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systems, bringing it a new chief executive. a month ago, didi received $1 billion investment in apple, now $600 million. investors are waiting on the fed, the boj, the bank of england. taiwana, singapore, and start off their trading week. >> it is a central bank waiting game this week. a bit ofeing quite trepidation ahead of those key policy meetings. malaysia, singapore, and taiwan joining in the selling. we are still seeing significant weakness from korea, japan, and new zealand. australia closed for the queen's birthday holiday. is leading the
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losses in the region. now at one-month lows. all of this trepidation has seen a big surge in the, so stocks under pressure, weakness and commodity prices weighing on materials and energy players. out of the 225 stocks on that index, only two are in the black this morning. korea down by 1.5%, and new zealand off by .5%. futures are suggesting weakness from china and hong kong when they open at the bottom of the hour. a big week, chancellor angela merkel in china, and china trade production within the hour. pricey checking on oil is, weakness weighing into energy stocks, down 1/10 of 1% . japanese yen and gold surging on
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safe haven buying. obama sayingident a massacre at a gay nightclub in florida is an attack on all americans and is being investigated as an act of terrorism. peoplele killed, 53 injured in the worst mass shooting in u.s. history. what do we know? >> the gunman has been identified as a 29-year-old u.s. citizen born in new york to parents from afghanistan, omar mateen. a 911 call before the attack at a gay nightclub in orlando in which he claims allegiance to so-called islamic state. omar mateen had come to the bureau's attention in 2013 when he made comments to coworkers about links to terrorist groups. the following year, he was investigated for ties to an american who became a suicide bomber in syria. foundg incriminating was either time, and despite official suspicions, he was able
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to legally buy guns just last week. he had worked as a security guard since 2007. in a statement, the company says it is fully cooperating with law enforcement authorities and its thoughts and prayers are with the friends, family, and people affected by this unspeakable tragedy. responded asidates well, and what if they been saying? >> donald trump call this the worst attack in the u.s. since 9/11, and said president obama should resign because he "disgracefully refused to to even say the words radical islam in his remarks." clintonaccused hillary of doing the same and say he predicted such attacks. donald trump use twitter to say the following. clinton, meanwhile, said that while we need to redouble the
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efforts to defend our country, we need to keep guns like the ones used last night out of the hands of terrorists or other violent criminals. here is what president obama had to say about the investigation. >> the fbi is appropriate the investigating this as an act of terrorism, and i directed that we must bear no effort to determine what if any inspiration or association this killer may have had with terrorist groups. what is clear is that he was appurtenant filled with hatred. over the coming days, we will uncover why and how this happened, and we will go wherever the facts lead us. fatherver, omar mateen's said religion had nothing to do with the killings and that his son may have been motivated by homophobia. security has been stepped up and gave venues across the u.s. after the worst mass shooting in modern u.s. history. a more: we will have
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detailed look at that story throughout the program and update you in orlando. atet us your thoughts @rishaadtv, include #trendingbusiness as well. data, tomf china mackenzie joins us now. retail sales, industrial production, what are we looking for? another important day for those of us trying to piece together the puzzle that is the chinese economy and get some clarity on what is going on and been any success with these touted reforms. we will get information on industrial output, retail sales, construction, real estate, and fixed asset investment. industrial output is expected to versus 6% iny april, so staying in line with april's number, and that will give us some clarity on how much
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demand there is now, particularly in sectors like steel, coal, and how well the government is doing in tackling overcapacity and reforming those sectors. on retail sales, were expecting the number in may at 10.1%, in line with april's figure. a key component is auto sales, because they were soft last month. retail sales are an indicator of the strength of the chinese consumer. the chinese consumer increasingly shouldering the board and as the chinese economy switches from manufacturing. fixed asset investment, we saw some weakness last month, so will their bickering confidence in that area. we are expecting that area -- number to be around the same area as well. all these data points key when it comes to the question on whether there will be more easing from policymakers or whether they can hold the course and ease back on credit as this structural change occurs.
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we are expecting this data to come to around 10:00 local time. rishaad: thanks for that. we will move to a million miles away, images from the chinese capital, a welcome ceremony for german chancellor angela merkel, her ninth trip to china as chancellor. she is hoping to drum up further support for business. shareholders should have the same rights as local shareholders, crucial and important to the relations between the two countries. she has called for transparency and says no one wants a trade war between europe and china and germany supports a stronger voice for beijing at the international monetary fund. up other topic she will drum business for is overshadowed by angst in germany by a bid for the robot maker there as well. merkel chancellor angela meeting the chinese premier.
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these are live pictures coming through. she has an inspection of the guard of honor. let's move to some other stories we are watching today, including news of another tie up in the world of tech. in the last couple of will by blueec coat systems. cas dealwill finalize the with cash. blue coat is a cyber security company. its chief executives will take over as symantec's ceo in the third quarter of this year. $600 million invested into didi, including $300 million in equity
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and $300 million in long-term debt. the two companies have agreed to form a comprehensive partnership on innovation. has formed an international coalition with other platforms, but does focus mainly on china. nation's twoby the most bible technology companies, alibaba and tencent. $1 billion was invested from apple. a widening investigation into korea's lotte group has impacted plans for an ipo. this comes after south korean prosecutors raided the group's headquarters as they investigate allegations of slush funds and embezzlement.
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group has said they will cooperate with the investigation. at howake a quick look the shares are doing right now. shopping down 7%. lotte chemical also trading lower. rishaad: thank you. coming up later, after a turbulent 12 months, facing the ax. j.p. morgan explains why they think the fed could hike rates not once, but twice, this year at least. that is coming up next on "trending business". ♪
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,> it is 9:30 a.m. in hong kong and ease of the stories making
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headlines around the world. the fbi says the gunman who killed 50 people in a florida nightclub had spoken about the so-called islamic state in a 911 call before the massacre. 29-year-old omar mateen was killed in a shootout with police. he was a u.s. citizen born in new york to afghan parents and had worked as a security guard. it is the worst mass shooting u.s. history, and president obama said it is an act of hate investigated as terrorism. he says no expense will be spared to find out what happened. minister david cameron says he is confident that the campaign to keep britain in the european union is working. the latest polls say opinions are too close to call. remain,rver said 44% with 42% backing brexit. the sunday times showed 43% of respondents wanting to leave the eu, with 42% happy to stay.
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contractsits new oil don't need revisions, but is confident the first deals will be signed soon. says theinister government and regulators have reached a partial consensus on the language, but the deals are 2-3 months away. iran is hoping the new contracts will draw as much as $50 billion of foreign investment each year from oil companies. taiwan's new leader has blocked her predecessor from making a visit to hong kong. theoffice says it rejected travel request because it needs more time to make security arrangements. a had been due to address journalism awards ceremony in hong kong on wednesday, making him the most senior taiwanese figure to visit the former british colony since 1949. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. my next guest says the federal reserve is likely to
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raise rates once or twice this year. great to see you. what is the thinking here? you are saying twice, aren't you? >> it looks like once or twice this year, but if you look at the future markets, it is less than one time after the disappointing job data in may. rishaad: that jobs data seems like a bit of an outlier. >> we have a lot of uncertainties in june, brexit, then u.s. elections. the global economic growth is pretty slow. world bank just adjusted 50 basis points down, so we have a lot of concern on the global level that may keep them from
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hiking too much. if you look at develop ed government bonds, how much can the u.s. high? rishaad: what is that telling us? >> that is telling us that people are quite bearish on the long-term global economic growth, and inflation will continue to be low and lots of countries. rishaad: let me pick up on that. in the u.s., we are seeing signs of inflation coming back, aren't we? >> the u.s. is the only exception. wage growth is increasing at 2.5%, which is nice. europe, it'st inflation is nothing. in japan, almost inflation.
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emerging-market inflation is coming down altogether. if you combine the world inflation altogether, it is getting lower. are buyingal banks government bonds pushing them to negative yields. rishaad: that is it, isn't it. let's look at the bank of japan. his monetary policy quite ineffective? pushing on auroda string with monetary stimulus and further moves into negative interest rates, while at the same time he is waiting for something to happen? >> yes, people doubt the effectiveness of monetary easing. ,conomic data is not improving in july,eriorating, so maybe they come with some surprise stimulus from the boj,
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but inflation is still falling faster than the rate is cut, so effectively the real rate is not falling in japan, so there is a bigger challenge. they have to get inflation up to create a negative environment. easing is not going to do the job. bank of japan has been looking at this very closely and have gone to negative rates. one member of the policy board has thrown away that inflation target. >> they realized it is difficult to achieve the 2% given that so that thereed strategy is not working well. rishaad: it is an economy which
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is perhaps languishing, not doing very much, but it is strange how the yen continues to get stronger. why is that the case? >> people just don't believe interest rates will stimulate growth. hike the u.s. rate cycle is potentially less than one. time, you have the pressure of less rate hikes from don'ts., and most people have confidence in the policy, so there are a lot of macro risks in the second half of the year, so that will drive a lot of demand for yen. rishaad: great talking to you. we have to take a break.
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coming up, chancellor angela merkel on a business trip to beijing. mayd for a robot maker hinder her talks. all that and more next on bloomberg. ♪
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rishaad: chancellor angela merkel in beijing. the opening reception there, her welcoming party. she's there to drum up business with china. robot maker could be overshadowing her visit. what do we have here. is the name of the company, but this is the latest takeover by chinese companies in germany. she's calling for equal access, but there is growing concern in germany about what the chinese are buying, a lot of technology
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companies, pressure growing, the purchases are creating tensions. , so sheher ninth visit completely understands the importance of the relationship. rishaad: that's just it. she wants transparency as well here. this is all a diplomatic game. all these chief executives are on her plane. made somend she ,orceful comments yesterday taking the boxes of what she should be saying, but she is probably more concerned about what is happening at home over the chinese incursions into the german market and what she will get out of this trip. rishaad: we will be monitoring headlines for this. andrew davis with the latest.
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right, japanese online recruiter's reach looking -- h looking tozreac raise funding when it goes public in five years. bizreach operates a paid membership website that connects job seekers with recruiters and companies looking to hire. name its china chief as chief executive of the u.k. supermarket chain, sky news saying an announcement could be made this week. asda ceo to be named by walmart.
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official investigations into a defunct airline are making it difficult to make a deal on debt repayment. he says there are no basis for inquiries by the enforcement directorate. he is living in the u.k. at the moment, but insists that he is not a willful default or. have in thiswe declines, therld, nikkei 225 off 2.9%. very close to that psychologically important 16,000 level. and southhe kospi korea. we are four minutes away from the start of the trading day in hong kong and shanghai.
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no trading in australia. more on the orlando nightclub massacre. we look at the horrified reaction on social media as we count down to market opens in the greater china area. ♪ get ready for the rio olympic games
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♪ a look at our top stories. the gunman who killed 50 people and america's worst mass shooting had been working as a security guard since 2007 omar mateen. omar mateenwas 29 years old, a u.s. citizen born to afghan parents. investigated him twice before and said he declared allegiance to so-called islamic state in a phone call just before the massacre in a gay club in orlando. the presidential candidates have been sparring over the orlando
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attack, with donald trump it proves he is right on islamic extremism, and hillary clinton has called for increased gun control. she said weapons of war have no place on our streets. donald trump saying president obama should resign for refusing to use the words "radical islam." >> it was more than a nightclub. it was a place of solidarity and empowerment, where people had come together to raise awareness, does begin mines, and advocate for their civil rights. this is a sobering reminder that attacks on any americans, regardless of race, ethnicity, religion, or sexual orientation is an attack on all of us. to buy blueantec coat systems for just over $4.5 billion, financing the deal with cash on hand and $2.8 billion of new debt, saying it expects net
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savings of $150 million a year. the bluecoat ceo will take over symantec after the deal is done in the third quarter of this year. we are getting underway in hong kong. shanghai is looking dismal. not the strongest of pushes from wall street. >> a pretty negative start to the trading week. tokyoet strategist and has told bloomberg this morning that the market hates uncertainty, a big understatement. quite a lot of selling coming through as we wait for keys central-bank meetings. the fed on tuesday, bank of japan this week, and bank of england, and the leave vote is gaining further traction, so all of that played into what we saw on friday, and we have followed suit in asia. ,ong kong down by almost 2%
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only two stocks higher, some weakness from casino stocks and retail players and shanghai. lowershare market opening , banged in line with what futures markets were suggesting. almost 3%,225 down leading those losses. are seeing the stronger yen way into export stocks as well. australia is closed for a public holiday. elsewhere, widespread selling across southeast asia. there has been a note out this a papersaying that manufacturer could be one of the main beneficiaries of shenzhen connect. it's not doing well today that will. -- well today.
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kong following that downward trend, the weakness in commodity prices as well. the money is in safe haven thets, the dollar-yen, dollar weaker against the yen, the yen up by three quarters of 1%, now getting close to break through that one of six handle. 106 handle. the imf urging china to tackle rising corporate debt or risk a dangerous e2 or's as it attempts to rebalance the economy. detours as itt attempts to rebalance the economy. it is a shot across the bow from the imf number two. david lipton is they're doing
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their annual assessment of china's economy, and he said the corporate debt load was serious and growing, and he called for immediate plans to tackle it. he described it as a key fault line in china's economy. he clearly sees this as a significant risk and says not enough has been done to date to tackle china's corporate file. we have had recent estimate suggesting $1.3 trillion worth of loans that have been extended to burroughs who cannot pay the interest on those loans. that is $1.3 trillion. there is another number, which is the debt to gdp figure, debtated at around 247% to gdp. nationsongst all g-20 has loaded up on debt faster than its partners in the last
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decade, faster than anyone else in the g-20, so this is a concern. the imf voiced this in april when the debt swap plan could lead to zombie companies. in fact, a lot of these companies need to be restructured or collapsed. they need to be dealt with immediately. the needwe heard about for reform from the vice governor of the pboc. he has been reiterating what has been said before. process isis reform moving at the speed of continental drift. seem to be the case from many people's perspective, yes. the former vice governor of the pboc saying that there needs to be more reform, more forsparency, a greater role
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the market. take a listen to what he had to say recently. be the goal of future reform to let financial products returned to the role of serving the real economy in a straightforward and transparent way. innovation does not mean novelties. it means cousin the adapting to the needs of the market. tom: his comments adding grist to the mill to those who say there are divisions at the top of the government in china for allowing greater market forces to play a greater role in the market here and more transparency or whether the default position of the common his party is to control and reassert control because they are very concerned about releasing control when it comes to things like the stock market and when it comes to things like the broader economy. now, the question that you pointed to is whether these were just words we are hearing from the former vice governor or
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whether this will have any impact and the government policymakers to enact those reforms. as you have said, they have been talking about this for a long time. as david lipton mentioned, these reforms need to be enacted quickly. rishaad: tom mackenzie there. let's get you to the latest on this mass shooting in orlando. having a look at the social media reaction to this, and the responses overwhelming, i'm certain. yvonne: that's right. hate will never win, that is the message we are seeing on social media. the tony awards are broadcasting in the u.s., many people wearing silver ribbons and honor of the victims and the lives lost during this heinous attack. in the moments after the gunman post right, we saw a
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after the gunman opened fire, saying everyone get out of paulson keep running. pulse and keep running. the response to donate blood has been overwhelming. one user saying this, the fbi investigated the orlando gunman twice and interviewed him, but he was still able to purchase firearms easily. it is that easily. another one saying, when will this in. how many mass shootings must occur before we regulate guns in this country. we also got this tweet from the daily beast. please, no more thoughts and prayers unless they come with a vocal recognition of this as an attack against lgbt people.
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we will continue to watch those tweets. its safetytivated check feature for the first time in the u.s. following that mass shooting over the weekend, a way for users and people at the club to make their mark on social media and market them as safe during emergencies, so that was launched during that time. -- who wonrd from the tony award for hamilton, dedicating his speech. he quoted "love cannot be killed or swept aside." rishaad: the inclusion of s has beenshare described as a historic certainty. made daysction was before a decision to add one-denominated shares to the index.
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-denominated shares to the index. the company secured a 55% discount on the rent for its flagship store, paying $231,000 a month over a three-year the 2100for square-foot store in hong kong, according to reports, the company looking for growth in taiwan and south korea after week retail sentiment in hong kong and macau. japan's favorite messaging mobile app has pushed ahead with its ipo. looking to raise $1 billion, but could have pulled $4 billion if it had listed earlier. investors cool on the tech sector. it is facing tough competition from facebook and wechat. it comes to asia's
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trading floor so far this year. pressure ander coming under increasing pressure to downsize their equity debts in this part of the world. what is the main force year driving this deterioration? >> it is a mix of different things, but overshadowing at all is probably china. if you look at what is going on in cash equities, china and hong kong cash equity revenues this year from a year earlier according to executives we talked to, down 30% to 50%. greater china fund itself, is about 30% to 50% of the overall cash equities market. then you have other things like brexit, the u.s. presidential election, like what the fed is faithto do, and waning and corporate governance reform
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in japan. how are banks likely to respond to this? a lot of western banks are downsizing. it is clear that the current market environment can't sustain the current playing field, so ,hat you are seeing people do barclays for instance, they got out of cash equities in asia months ago. cuts in the next few months unless for ames pickup markedly, and other banks might choose to do the same thing and cut some business lines altogether. rishaad: what are some of the positive possible catalysts? >> one would be the msci inclusion, goldman sachs putting that at 70% probability. we will find out later this week , so we have some executive saying that that could provide a
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bit of positive sentiment impact. others are saying that it will be very gradual, if anything. the other one being whether they open nations in -- open a change in rishaad: our next guest saying of a hikeuspicion this week, despite saying there is no chance of a june rate rise. ♪
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kong,is 9:45 a.m. in hong these are the stories making headlines around the world. president obama says the gunman who killed 50 people at a florida nightclub was filled with hatred, and the massacre is being investigated as an act of terror. another 53 people were wounded in the attack on the gay club in
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orlando, the worst mass shooting in u.s. history. the killer has been identified a 29-year-old, u.s. citizen born in new york to afghan parents. talked says omar mateen about islamic state in a 911 call before the attack. massacre is therefore a further reminder about how easy it is to get hands on weapon that allows them to shoot evil in a school, and house of worship, a movie theater, or a nightclub. we have to decide if that is the kind of country we want to be, and to actively do nothing is a decision as well. >> it is a horrible tragedy. we are mourning. we are sad. we are heartbroken. it is not really time for any sensational news and rush to judgment. chancellor angela merkel has
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called for foreign investors to have the same rights as local shareholders in china. of her visit, she said the rule of law was crucial and important to relations between the countries. she said no one wanted a trade war between europe and china, and that germany supports a stronger voice of beijing at the imf. weapons imports by saudi arabia pushed global arms sales up by 10% last year to $65 billion. a new report says the kingdom spent more than $9 billion in 2015, more than twice what it spent the year before. purchases also rose across the middle east and southeast asia. the u.s. is still the world's top arms exporter, followed by russia and germany. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. the markets are seeing no chance of a fed hike next
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week, but our next guest said there is growing suspicion that may be wrong. let's get a look at economic data and more. great to see you. you really are sticking your neck out, aren't you, by suggesting that there could be a rate hike next week? nobody is thinking that. >> we are not saying it will happen. we have had a 30% likelihood for three months. we are not changing that much. we are seeing some dynamics, especially u.s. dollar dynamics, where we do feel there is a growing suspicion that this may happen based on the dollar, the impact of oil, asian markets, other things. rightoblem with the fed now is they are in this data point zone. you can look at industrial production, retail sales, mortgage applications, and say things are great. then you can look at some other things and say things are not so
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great. they can find whatever justification they want to make whatever decision they want. rishaad: right, that's just the thing. the fed has togs deal with his inflation, and we do get some signs of that. someah, but you have secondary impacts of the energy deflation last year and early this year, and now you're starting to see a rebound with that, so that inflation discussion cuts both ways as well. i guess the question really is, and we have a 70% likelihood the fed won't move this month, but the question is when. with the presidential election coming up, they either have to move now or july or they have to wait, because then it becomes part of the political discussion. rishaad: let's move the discussion to this part of the world and have a look at the bank of japan. what did they do next?
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i have just said to my previous guest that is it like pushing on the string when it comes to governor kuroda upping the ante? he needs his partner to get his house in order from the fiscal perspective, does he not? >> absolutely. it is exactly like pushing on a string. the problem is they have to be seen to be doing something before the election in july, so it is much more convenient and immediate to push the boj to do more bond purchases in the near term than to move on the fiscal side, and so we keep hearing from the administration that we will move on fiscal after this happens, after that happens, but the convenient solution is to have the boj move, and that is likely what will happen. we do not think it will be a major move. we think it will be something that is more of a show than a material move just before the election or over the next month. dataad: we will get to the
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at the top of the hour, but let's move to one of the biggest stories right now, uncertainty about britain's future in the european union with this referendum. do you think-- it's being overplayed for this part of the world or do you think markets are getting themselves into a bit of a state because they like to do that? i think you're right. i think the markets are getting themselves into a bit of a state. i think rags it is overplayed in this part of the world. i think it will have little impact. that say they do exit, would help their competitiveness for exports here. china has said that if written ops to leave, they will -- an fta qan fta with the u.k..
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their trade with emerging markets has accelerated dramatically, so we think a lot of the downside analysis has really been overplayed. , youad: last question data pointsina, two coming up in 15 minutes or less. tell me about that. salesthink with a retail that we are around 10% growth. we were 11% plus, but we've settled in this 10% happy zone. same thing with industrial production, a 6% happy zone. we don't necessarily see things accelerating. be august,lly september, before the stimulus from the central government meetings really kicks in, so we have been saying it will be q3 before we start to see that stimulus take place. until then, acceleration of loans and other things to push it in the near term, but we will see some fundamental changes in
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august and september. rishaad: great talking to you. have a good one. that data is out and about seven minutes. up next, let's have a look at what is going on with apple. well, anut siri as update from the company coming through as they prepare for that conference. ♪
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knowad: if you want to about apple, just ask siri. the apple developer conference. the world wide developer conference is where 5000 developers gather in san francisco and apple shows the new products. these products are not new iphones, macs. your operating system for iphone, apple watch, and apple tv.
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it is important what they do there. the developers are going to see an update to apple music, which has had a tepid reception in the years that it has been available. it has been a troubled product. there will be a big update to siri. apple will release a developer developers tos build siri into their application. order a pizzauld downlo uber through that app. at the moment, apple takes a 30% cut of everything processed through the app store. in the future, if you can convince a customer to subscribe for more than a year, apple will cut the percentage it takes down to 15%.
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it is incentivizing people to sell subscriptions, helping apple to predict its revenue streams, while locking customers in to a contract. ♪
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rish: this is "trending business." i am are shot salaam it. -- rishaad salamat. seconds away from the latest reading on the chinese economy with the intimate release of industrial production and retail sales figures. let's get straight over to beijing where tom mackenzie is. i haven't got the numbers, but what are we looking at? just waiting for those numbers to hit the screen, but we know the forecast for
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industrial output are up 6% year on year. that compares to 6% growth in april. i'm expecting it to be in line with april's number. retail sales is another crucial number. it's out now. we've got industrial output -- i'm sorry, 6%. china industrial output rises 6%. got in the number we april. that was in line the forecast. -- with the forecast. we are hoping to get retail sales numbers, as well. it looks like retail sales year on year have come in at 10%, marginally below the 10.1% that had been forecast in our survey. it was 10.1% last month in april, but this month, retail
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.ales year on year, up 10% pretty much in line. no big surprises from the data so far. we did see last month that retail sales were slightly weaker, and that weekend the number last month. this number for may is in line with forecasts. i'm hoping to get fixed asset investment numbers, as well. that's an important one. in april, investments were 10.5%, and the survey was for 10.9%. may.are up 9.6% in that is fixed asset investments year on year in china up 9.6%. marginally below the 10.5% forecast. companies, still keeping some of their investment on the table, pointing to continued lack of confidence when it comes to investing in fixed assets in china.
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that is the number that shows a more significant change, where as industrial output and retail sales are more in line with the forecast we had been getting. that is fixed asset investment year on year, 9.6% in may. it?: it's the s word, isn't it all points to stabilization. it does. we saw obviously that in march we had those more positive data points when it came through on pmi manufacturing and services, and in april, there was that disappointment, and it seems to have stabilized somewhat in the last few months. it means that the pboc will probably hold off on further easing. stabilization is good. we saw a lot of credit getting put in the system towards the end of last year and the beginning of this year.
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stabilization is something that the policymakers will be relatively comfortable with, but again, it points to the balance between keeping credit, going into a system, and trying to effect real change by cutting this overcapacity. we expect policymakers here, there's a lot of pressure on them to take more action, as we have been hearing this morning. this is a relatively stable outcome, not exactly positive, but no big disaster when it comes to the china data. rish: that's tom mackenzie. we were deep in the red for the hang seng before the data came out. it is still the same right now. let's take a look at what the reaction is. normally one of the first things to move is the australian dollar, but not much for on --
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for investors to get their teeth into. seems to be a flat level, stabilization, bang on the money, effectively. tom said, no real surprises come although we did see a spike coming through in the aussie dollar, which has been trading in a fairly tight range. a little jump coming through. they are paring back just a touch. .7376. it is slightly higher against the greenback. as you say, these numbers didn't have anything for the market or investors to get worried about. we are still seeing the asian markets hold onto those losses of about 9/10 of 1%. we saw this trepidation, these concerns ahead of the big week that we have with the fmoc meeting, the bank of japan, the bank of england, concerns about brexit, and we have seen
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weaknesses is coming through in commodity prices. on the hang seng, only one stock is moving higher, and in japan, we are seeing that weakness coming through in exporters. unfortunately, we can't get a reaction to that china data from australia. it is closed for the queens holiday. weakness similar to what we were seeing before these numbers came through. not a very positive start to the trading session across asia. rish: thank you very much. our top stories, president obama saying that the massacre at a gay nightclub in florida was an attack on all americans. it is being investigated as an act of terrorism. 50 people were killed, another 53 wounded. it's the worst mass shooting in u.s. historyy. what do we know about this killer? yvonne: the government has been een, bornd as omar mat
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in new york. those who knew him said he was a bodybuilder, security guard, and a religious man, and at one point, he thought about being a police officer. the fbi says he made a 911 call before the attack on the gay nightclub in orlando, in which he claimed allegiance to the so-called islamic state. the bureau'sme to attention in 2013 when he allegedly made comments to coworkers about links to terrorist groups. the following year, he was investigated for ties to an american who became a suicide bomber in syria, but nothing incriminating was found either time. , heite officials' suspicion was able to buy guns last week and has worked as a security guard since 2007. in a statement, the company said it is fully cooperating with law enforcement authorities, and
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thoughts and prayers are with the family, friends affected by this unspeakable tragedy. rish: the presidential candidates have been responding to the killings. what have they been saying? donald trump and hillary clinton. yvonne: donald called this the worst attack in the u.s. since 9/11 and said president obama said -- should resign because he "disgraceful he refused to say the words radical islam in his remarks." he accused hillary clinton of doing the same thing and said he predicted such attacks. to say "if wetter do not get tough and smart fast, we are not going to have a anymore. appreciate the congrats for being right on radical islam and terrorism." clinton said, "we need to redouble our efforts to defend our country from threats at home and abroad. me to keep guns like the ones used last night out of the hands of terrorists or other violent
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criminals." here is what president barack obama had to say about the investigation. >> the fbi is investigating this as an act of terrorism, and i have directed that we must spare no effort to determine what if any inspiration or association this killer may have had with terrorist groups. what is clear is that he was a person filled with hatred. over the coming days, we will uncover why and how this happened, and we will go where the facts lead us. teen's father told nbc religion had nothing to do with the killings and that his son may have been motivated by homophobia. his ex-wife said he was mentally ill and have been abusive. security has been stepped up at gay pride events and at gay venues across the u.s. after what is the worst mass shooting in modern history. rish: we will have more on that story later on in the program. naturally, we are covering this
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developing issue. we are getting reaction from around the world. let's catch up with some of the other stories we are following for you. here is rosalind chin. : semantic is beefing up its expertise in cyber security with an agreement to buy blue coat systems for about 4.6 5 billion dollars. symantec will finance the deal with cash on hand and $2.8 billion of new debt. symantec had announced in april that michael brown was stepping down from the position but staying in place until a replacement was found. the software company says it expects $150 million in annual .et cost savings the deal is likely to be completed in the third quarter.
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the investment includes $300 million in equity and another $300 million in long-term debt. have agreed toes form a comprehensive partnership on internet-powered financial innovation. didi has formed a coalition with other platforms such as lyft but focuses mainly on its home market in china. it is backed by two of the nation's most valuable technology companies. last month, $1 billion from apple. a widening investigation into korea's latte group means the end of the road for the ipo of its hotel unit. difficult it would be to meet next month's deadline to complete the $4.5 billion offering. for example, additional exposure. it could have been the biggest listing in the world this year and is expected to be shelved.
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prosecutors raided the hq and offices of some units on friday as they investigate allegations of slush funds and embezzlement. the group has said it will cooperate with the investigation. there is also another separate investigation into alleged bribery. let's take a quick look at the shares. this is how groups under the lotte group umbrella are faring. lotte confectionery, down 6%. chemical and beverage, also down this hour. rish: on our website, we are looking at why china's appetite for pork has helped it to double u.s. shipments this year. that is on bloomberg.com/asia. we've got japan's leading mobile messaging service pulling the trigger on its ipo. cost themow it could over $4 billion. angela merkel in beijing. more on why a robot maker could
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throw its banner in the works. ♪
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>> it's 10:13 in hong kong are these are the stories making headlines around the world. present obama says the gunman who killed 50 people at a florida nightclub was filled with hatred. the massacre is being investigated as an act of terror. another 53 were wounded in the attack on the gay club in orlando. it's the worst mass shooting in u.s. history. the killer has been identified a u.s. citizen born in new york to afghan parents. the fbi says he talked about the so-called islamic state in a 911 call before the attack. >> this massive core is therefore a further -- massacre on howr the reminder easy it is for people to get their hands on a weapon in which they can shoot people in a house
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of worship, movie theater, or a nightclub. we have to decide if that's the kind of country we want to be. that's anothing, decision, as well. its new oil contracts will need revisions, but it's confident a deal will be signed assumed -- soon. the governmentys has reached a partial consensus on the language. iran is hoping the new contract will draw as much as $50 billion of foreign investment each year from global oil companies. prime minister david cameron said he is confident the campaign to keep britain in the european union is working. the latest polls say opinion is too close to call. the survey from "the observer" shows 44% support britain remaining with 42% backing the brexit. in contrast, a poll for "the sunday times" shows 43% wanting to leave the eu with 42% happy
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to stay. journalistsver 2400 in 150 bureaus around the world, this is bloomberg news. anglo merkel has called for foreign investors to have the same rights as local shareholders in china. she said the rule of law was crucial and important to relations between the two countries. she said no one wanted a trade war between europe and china, and germany supports a stronger voice for beijing at the imf. let's get over to beijing itself and speak to the president of the european union chamber of commerce in china. thank you very much for joining us. what is going to be dominating the agenda on this visit? they will discuss the development of the global economy.
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china's development -- sorry, i they will discuss china's economy, the outlook that is looking more dire. this is under a bit of a cloud, isn't it? there's a german robotic company attempted -- that is being to be taken over by a chinese company. how much is that cloud in relations between the two? >> i think it is slightly overdone. we have more chinese investment going into germany, and we have an open economy. i think there will be no big issue about the forthcoming possibility of a chinese company taking over private companies. at the same time, it's an .xemplary case
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german companies that want to do business in china don't have the same rights. we don't have the same freedom of picking targets that are interesting to us. market access is still very constrained. tell me something -- these two sides know each other very well. it's a very mature relationship. i believe this is the ninth visit as chancellor for angela merkel to china, which gives the level of importance they attached a beijing. has pretty much everything been sealed up before they got together? it's very important that the major leader of the european union is meeting the chinese leaders. merkel brought along half of her cabinet, which is unprecedented in european-china relationship. is a meeting, but it helps
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to facilitate the discussion about issues coming up. for example, chinese investment and ofrmany, europe, course, the problems we have in european business. rish: of course, the relationship between the european union and china, as well, is central to this visit. >> yes, of course. , we have the eu-china summit. merkel is a major voice. she will not speak for europe. she is very sophisticated in hurricane occasion skills. she is very credible. the chinese appreciate her realism and candid language behind closed doors. in a way, i think she's important for europe to speak at this stage, to make the chinese aware of the anxieties that are
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taking place in europe about the chinese investment coming. rish: where do we go from here with this? for instance, we've got this brexit vote coming in the u.k. in less than two weeks. in fact, it's 10 days to be exact. ok, that's britain, but at the end of the day, it is part of the european union still. how much will that be talked about in your view? i'm sure this is coming up. the chinese leadership has made it clear they would like to have britain. it would be a great loss for the european union to have britain leaving the economic unity that we have. beingk there's no plan b discussed. we can only hope that the voters in britain will vote yes to stay. the ramifications, of course, are quite immense. china is looking to the european
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union. financially, they are very interested in london, and this might have an impact if the voters decide for brexit. rish: would you say relations between europe and china have improved or worsened in the last four years? >> first of all, they have deepened. we talk about 1.5 billion euro everyday, one billion coming from china to europe, and 500 million coming to china, so it's very good. fromgn direct investment the chinese into europe has increased double digits. last year, about 20 billion. the european investment into china went down by more than 10%, less than 10 billion. the chinese invest twice is much in europe than europeans invest in china. it's very deep, but of course, it's not easy.
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word reciprocity comes up more and more. the europeans want to do the same as the chinese are doing in the european union. you also know about the market , but this isssion not a call for trade war or trade tensions. this is going to be talked about a lot before the end of the year, but i'm sure they will find a solution. rish: thank you very much. he's the china representative of the sac chemical giant. asia, feeling the squeeze. things could get worse, according to some executives. we've got details just ahead. ♪
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rish: it has been a quiet year for asia's trading pool.
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theover has shrunk it fastest rate since 2006, and banks are coming under increased pressure. why are we seeing this deterioration? pretty broad, but one primary factor is obviously china. revenues, down 30% to 50% according to the executives we spoke with. you are also looking at weakness across the board. derivatives could be done by 50% or more. according to executives we spoke with for our story, down about 20%. china is leading it, but it's pretty broad. rish: how are banks responding to all of this? >> some of them are making pretty deep cuts. you saw barclays earlier in the year deciding to get out of cash equities in asia. nomura has been doing the same in europe, and then you have
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bnp, mccoury making smaller cuts. the sense in the sentiment market right now is unless we have a pickup in the next few months, you are going to see more cuts. rish: some of the businesses have gone to these chinese brokerages. there have been quite a lot of them moving into -- [indiscernible] one would be the obvious one. inclusion, if they come. goldman put that at a 70% probability, up from 50% earlier. some of the executives we spoke with said, yes, that would be a positive catalyst. others are taking a more cautious approach, saying it will take more time to feed through. all right. thank you very much. up next, billions of japan's
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mobile messaging service. those details are on the way. ♪ okay, ready?
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♪ rishaad: a look at our top ,tories, china's economy industrial production rising 6%, matching estimates. retail sales 10%, but fixed asset investment growth of 9.6% below forecasts. monetarysuggesting stimulus and fiscal support are doing their job. the gunman who killed 50 people and america's worst mass shooting had been working as a
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security a guard since 2007. years of age,s 29 a u.s. citizen born in new york to afghan parents. the fbi did investigate him twice. declared allegiance to so-called islamic state just before the massacre at a gay club in orlando. presidential candidates have been sparring, donald trump saying he was right on islamic extremism. fourry clinton called title can control. weapons ofbama said war have no place on our streets. >> the place where they were attacked is more than a nightclub. it is a place of solidarity and empowerment where people had come together to raise awareness, speak their minds, and advocate for their civil rights, so this is a sobering reminder that attacks on any american regardless of race,
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ethnicity, religion, or sexual orientation is an attack on all of us. where having a look at what has been moving the markets, a fairly dreary start to the trading week, but that chinese economic data, do we have a considered reaction to that? juliette: not really. chinese stocks still under pressure. through,e data came the shanghai market was off by 1%. kong,nly gloomy in hong japan leading the declines in the region. the hang seng index has fallen the most in four months, down by 2.4%. there was that public holiday on thursday, but selling coming through on that market, only one stock higher.
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elsewhere, a lot of selling coming through. in japan, now on its lunch break , down 2.6%. all this trepidation ahead of global equities ahead of the fmoc meeting. sendingbank meetings investors out of risk assets, putting downward pressure on japanese stocks. weakness coming through across southeast asia, korea down 1.5%. to reactn no chance because it is closed today for the queen's birthday holiday. weakness to the tune of 6/10 of 1% in new zealand. i want to show you some of the biggest drags in the region in terms of stock moves.
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this is after micron announced it is delaying its potential acquisition for undisclosed reason, so chip makers coming under pressure. mazda also leading declines, export stocks coming under pressure. with a littlelar bit of jump with china data coming through, nothing to surprise or upset investors. up by around a 10th of 1%. still some strong gains coming through in the yen. rishaad: getting back to our top story, china's economy stating -- not a hugenge surprise here. it is painting this picture of an economy which is settling at a growth rate which is commensurate with the transition
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to a consumer society. >> i think that's right. the economy here is holding the line for now according to this data. no big surprises. there were some interesting changes around fixed asset investment, below forecast. it came in at around 9.6% year on year in may versus estimates of 10.5%. industrial output held in line with forecasts, rising 6% in may year on year. that compares to the 6% increase in april, and it is in line with forecasts. retail as well, a bit off forecast, 10% year on year for may versus estimates of 10.1%. increasingly important part of the consumer picture here, the consumer section of the economy takes an
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increasing role in shouldering the economic burden as this shift takes place. for now, chinese consumers remained relatively bullish, and they expectest wages to increase. the question is how much is that going to continue, particularly if we see a retraction and some of the big state owned of thatses and some overcapacity, if dealt with, will increase job losses and impact wages. for now, retail sales are holding. there is a level of uncertainty amongst visitors owners, not quite as ready to invest as much as they have been, following last month's numbers in april for fixed assets investments, also below forecasts, so that is one to watch going forward and points to a continued level of
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uncertainty when it comes to what policymakers plan to do longer-term. me something, any surprises in all this news? i think one stand out surprise was the pickup and auto sales. they pushed it down retail sales slightly below the estimates last month. for this month, they came in much stronger, auto sales up 8.6% in may versus 5.1% in april, so people going out there and buying new cars in greater numbers. -- p sales are coming off off, sales coming potentially taking shorter journeys. household electronics came off 0.7% increase in household alert tronics -- household
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electronics. rishaad: thanks for that. tom mackenzie there. widening investigation lotte, a recent string of issues facing the group. promising alooking month ago, and suddenly it looks like the company could be under some serious pressure. , i think the ipo is dead. most analysts just don't think it, toon go ahead with many regulatory filings before the deadline next month, and even the statement they issued indicates that they may have already made a decision. i guess the question is when they will formally file to withdraw the ipo.
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of course, this comes amid , perhapsnvestigation much more significant than the other one that was launched a month ago that had delayed this ipo. this one, the latest one that broke last friday, will probably kill this one. rishaad: right, tell me, what do we know of these investigations? what have the authority's been saying? well, this is significant mainly because it is going directly at the company and officials in there. the prior bribery investigation that was launched a month ago an indirect company, a cosmetics company, that may have bribed officials in return for better spacing in a duty-free shop that lotte runs. this one, according to some prosecutors we talk to, are
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allegations that these affiliates of lotte maintained a slush fund to bribe officials to get their projects done. are currently building a 123 story building, office-condo building, and the suggestion is that they may have gotten some favorable treatment as a result of these slush funds. rishaad: now, what about the market? how have they been taking it? is a huge company and this would have been one of the largest ipos this year. thet would have been biggest, even with the reduced price after the first investigation began. the market is not taking it very well. listedht of lotte's as offell right away, and
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about 30 minutes ago, they lost 1.2 trillion won in value, so the market is not taking it well. rishaad: thank you very much indeed for that. joining us there from seoul, korea. some stories making headlines out there, with the inclusion of a-shares in the msci a just days certainty, before a decision about adding yuan-denominated shares to the index. retailer,the jewelry shares down 1% in a declining market. the company securing a 55% discount on the rent to its flagship store in hong kong. 200 $32,000 a month over a three contract for its 2100 square-foot store in
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central hong kong. it's alsoto reports, looking for growth in taiwan and south korea after being hit by weekly sale sentiment in hong kong and macau. reportedly ready to name its china chief as ceo of the u.k. supermarket chain it owns. asda started his retail career before moving to walmart asia. japan's favorite messaging mobile app has pushed the button on its ipo, but line, a two-year t delay had cost it a pretty penny. it could have drawn in $4 billion if it had gone earlier. why is it pushing ahead now? >> i would have to say they may be considering some good value acquisitions. thats been a few quarters
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monthly active users are not growing, so they probably realizing that they cannot rely on it alone. rishaad: have they gotten to a point in japan where they are almost at saturation levels? needght, they probably acquisitions and new hires. for new hires, we know that there is a significant amount of expense with them, and they have been paying employee compensation in terms of stocks, so putting value to stock options could be one of the reasons why it finally pulled the trigger. rishaad: what about valuations here as well? how is the valuation compared to some of the company's peers? 12even just trailing months, it looks reasonable -- valuing them at
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five times sales. they are not making money last fiscal year, they could do that this year. last year, they incurred some of --, i'mn because sorry write offs on investment. rishaad: what about the company weaknesses?d they are too reliant on the domestic economy in japan and korea. acquired ahey company in december and relies they needed to write it off. strength, they have some potential in growing the advertising business. we realize that lines advertising sales contribution
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to the company is only about 40% , compared to facebook and other still peers, there is room to grow that part of the pie. thank you very much indeed. we have to take a break. ,p next on "trending business" the worst mass shooting in american history. ♪
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kong is 10:46 a.m. in hong , these of the stories making headlines around the world. searching weapons imports by saudi arabia helped to push global arms sales more than 10% last year to $65 billion. a new report says the kingdom spent more than $9 billion in 2015, more than twice what it spent the year before.
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purchases also rose across the middle east and southeast asia. the u.s. is still the world's exporters, followed by russia and germany. an explosion in beirut wounded one person and badly damaged a bank. the government confirm the bomb was placed under a vehicle, but did not say whether anyone or anything had been deliberately targeted. taiwan's new leader has blocked her predecessor from making a landmark visit to hong kong. the travelrejected request because it needs more time to make security arrangements. address an due to journalism awards or money on wednesday. the trip would have made him the most senior taiwanese figure to visit since 1949.
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powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. the fbi says the gunman who killed 50 people and a florida nightclub had spoken about the so-called islamic state in a 911 call before the massacre. 29 your old omar mateen -- 29-year-old omar mateen was a u.s. citizen born in new york to afghan parents and had worked as a security guard. president obama says it is an act of hate investigated as terrorism. he said no effort will be spared to find out what happened and again question gun laws in america. not surprisingly, and out pouring of sympathy, anger, and the fines when it comes to social media. vigils happening right now across the u.s. and d.c., singing "we shall overcome" outside the white house. will never win, that is the message spreading across social
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media right now. about gun laws, gay rights, and some even questioning how omar mateen was able to get hold of firearms legally because he had been investigated by the fbi several times, although they could not find any incriminating evidence against him. here is one user. some blaming guns instead of the perpetrator. also, speaker paul ryan speaking about this, too, saying the following.
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we also have heard that facebook was able to activate the security check over the weekend moments after this mass shooting tosunday, enabling users check in with friends and family on facebook. this is the first time they have launched it in the u.s. it was launched during the paris attacks and brussels. in paris, it was the first time they had used this tool for a crisis other than natural disasters. rishaad: thank you very much. we have to take a break. coming up, is the transpacific partnership teetering on collapse? ♪
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♪ rishaad: you are back with "trending business". i am rishaad salamat. ratification of the transpacific partnership without any changes. our southeast asia correspondent joins us from singapore. what is the thinking where you are on tpp? >> singapore stand is pretty clear. is of strategic importance, about u.s. commitments across asia, key to president obama's
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rebalancing to the region economically and militarily, so it goes beyond typical trade agreements, more about cutting tariffs. year, 12gned last member countries, including australia, japan, mexico, malaysia, and vietnam. they account for 40% of the tradeeconomy, the biggest you since nafta in 1994. now it is ready to be ratified, but the thing is this. may be unraveled, both presidential candidates oppose the deal. u.s. labor groups say it protects company profits at the expense of workers, and some u.s. lawmakers want it to tweaked. rishaad: what are the chances of the ttp being ratified? is that it has the
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best chance of getting ratified after the u.s. elections in november, when we have the lame-duck session of congress before the new term begins in january. republican senator john mccain was in singapore, and said exactly that, but the risk is that the deal can still unravel tweakere is any attempt to the tpp in any form. the japanese prime minister says the tpp will fall through if it is changed. is a part of this whole agreement. how much does it stand to lose? out on, china could miss an estimated 46 per you in trade 46%investments each year -- in trade and investments each year.
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has signed with trade agreements with two thirds of tpp members, like singapore, australia, chili, and new zealand. china's investment surged more than 300% in southeast asian economies as the tpp was being negotiated. china was preparing itself for the deal. rishaad: thanks. right, here's a look at some big events we are following for you. the latest data shows the chinese economy stabilizing, so is there cause for concern? the imf issued its verdict on tuesday on the world's second-biggest economy. the second in charge says aging should take urgent steps to tackle rising corporate debt. china will find out on wednesday s will be-share included in the msci index. the decision has been delayed twice over concerns of market accessibility.
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it would give it awaiting a 40% in the index. we have signs of waning support p,om members of the ruling ld reducing incentive ahead of the election next month. kuroda is faror from his inflation target of 2%, even after three years of unprecedented action. shanghai disney opening its doors for the first time, showing the world what $5 billion buys you in the theme park game. the resort goes up against homegrown wanda city, which launched last month. that is it for "trending business". join angie next. ♪
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angie: it is the middle of the asian trading day. we are alive in hong kong and this is "asia edge." i am angie lau. china's economy studied the last month even have -- even as investments suggest the rebalancing is working. the group is facing a widening
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investigation into slush funds and investment. pitching a ride, another big factor. terror and hatred, more details emerge about the gunmen who killed 50 people in america's worst ever mass shooting. juliette: keeping an eye on the markets, hong kong and tokyo dragging the region lower on what has been a dreary start to the trading week. investors playing a little bit of game of waiting. there is also the bank of england and brexit concerns. the hang seng down, the most it has fallen in four months. a stronger yen

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